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What Investors Should Be Watching With Costco

What Costco investors had better be following.

In the video below, Fool analysts Blake Bos and Isaac Pino discuss Costco Wholesale(NASDAQ:COST) and what investors need to keep their eye on.

Costco brings an interesting model to retail: Not a lot of promotions, not a lot of marketing. But people love it.

The question is: Can that translate to other countries? Costco has expanded to the U.K., where it now has 22 stores, and into Mexico and high-growth areas like the Pacific Rim, Australia, and South Korea, Isaac says.

But it faces competition. PriceSmart(NASDAQ:PSMT) has a strong presence in Latin America and Wal-Mart(NYSE:WMT) is known around the globe.

Membership is also another important area to watch for Costco. The company has sustained double-digit membership growth. But it also is looking to grow its pricier executive memberships. That could bring more to the bottom line.

Investors should keep a close eye on membership renewals and upgrades, Isaac says.

Author

Isaac covers the companies that constantly push the world forward, from the engines of innovation like GE and Google to the rule breakers like Chipotle and Whole Foods. He admires the leaders that embody the philosophy of Conscious Capitalism.
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